Universal Travel Inc. borrowed $500,000 on November 1, 2016, and signed a 12-month note bearing interest at 6%. Interest is payable in full at maturity-on October 31, 2017. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2016, in the amount of: O $8,000. $25,000. O $30,000. O $5,000.

Universal Travel Inc. borrowed $500,000 on November 1, 2016, and signed a 12-month note bearing interest at 6%. Interest is payable in full at maturity-on October 31, 2017. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2016, in the amount of: O $8,000. $25,000. O $30,000. O $5,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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